CAE Drastically Reducing Global Footprint to Cut Costs as Iran War Takes a Toll
CAE plans to cut simulators, close up to six training centres and shrink its global footprint by 17%, citing lower rent and labour costs.
- On Wednesday, Montreal-based CAE Inc. reported first-quarter profits fell 46% to $31 million while revenue rose 7% to $1.17 billion. CEO Matthew Bromberg announced plans to drastically reduce the company's global footprint by year-end.
- Nine months into an overhaul Bromberg calls a "reset year," the firm is consolidating its network as the Middle East war continues to impact earnings, with airlines slashing flight schedules and reducing pilot training demand.
- To lower expenses, the Montreal-based firm will remove one-tenth of its full flight simulators, close four to six civil aviation training centres, and occupy 1.7 million fewer square feet by June 2027—a 17% reduction in total space.
- While Bromberg acknowledged the company could lose some clients during reorganization, he expects to retain nearly all existing customer contracts. Training operations will shift to other facilities to ensure continuity.
- The broader transformation aims to reduce rent and labour expenses across the worldwide network. Bromberg, who took the helm one year ago, expects to complete this overhaul by year-end.
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Matthew Bromberg, President and CEO of CAE, plans to significantly reduce the global footprint of the flight simulator manufacturer by the end of the year as part of a broader transformation plan.
CAE Inc. Drastically Reducing Global Footprint To Cut Costs As Iran War Takes A Toll
CAE Inc. chief executive Matthew Bromberg plans to drastically reduce the flight simulator maker’s global footprint by the end of the year as part of a broader transformation plan. The CEO, who took the reins one year ago to the day, says the company will inhabit 1.7 million fewer square feet by the end of June 2027, a reduction of 17 per cent. As part of the scale-back, the Montreal-based firm will remove one-tenth of its full flight simulators…
The Toronto Star
CAE drastically reducing global footprint to cut costs as Iran war takes a toll
MONTREAL - CAE Inc. chief executive Matthew Bromberg plans to drastically reduce the flight simulator maker's global footprint by the end of the year as part of a broader transformation
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